A cash advance allows a customer to use his/her payment card, such as a credit card, to obtain short-term cash loan at a bank or automated teller machine (ATM).
In current payment systems, a cash advance transaction can be made at a bank using a payment card and an ID showing that the person making the cash advance transaction is an authorized user of the payment card. A cash advance transaction can also be made at an ATM using the payment card and a personal identification number (PIN) associated with the payment card. While the cash advance feature provides convenience to the customer when cash is needed, cash advance-related frauds significantly undermine its utility. For example, a fraudster may steal someone's payment card and obtain cash from a bank using the stolen payment card and a fake ID. In another example, a fraudster may steal the payment card information and its associated PIN, and obtain cash at an ATM using the stolen combination. It is difficult for current payment systems to prevent or deter such fraudulent activities.
Thus, there is a need for systems and methods capable of providing additional safeguards to manage cash advances to reduce cash advance related frauds.